He said the details would be worked out by the top brass of the militaries of the two countries.

"As Cambodia has a peacekeeping force, several military equipment can be produced together initially. For example, when Malaysia makes the change to replace the M16 assault rifle to the M4 version, Malaysia is also given permission to share the intellectual rights for the assembly of the M4 with several other countries.

"Cambodia welcomes Malaysia's proposal to cooperate in joint production of military assets and maybe also with some other countries towards realising regional collaboration in the defence industry," he told Malaysian journalists after calling on Cambodia's deputy prime minister and defence minister Tea Banh at the latter's office here Thursday.

He said stressed that the cooperation was merely to advance the defence industry regionally and was not aimed at forming any military blocs.

Ahmad Zahid, who arrived here Wednesday for a three-day visit, paid a courtesy call on Cambodian Prime Minister Hun Sen following the meeting with Tea Banh.